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Town and schools close fiscal year with generally positive balances; grants and investment gains lifted revenue
Summary
Committee reviewed year-end (June) financial reports for the town and Board of Education, which showed near-budget operating fund results, grant timing effects, higher investment unrealized gains, and several one-time items such as proceeds from a lien sale.
Town and Board of Education officials told the audit committee Sept. 24 that fiscal 2025 closed with generally healthy fund balances but several line-item variances tied to one-time events and timing. Sean and finance staff reported the town's operating fund expense totaled $108,400,000, or 99.3% of the approved budget, leaving a balance of $768,000 to be returned to the town's general fund. Grants awarded declined to $2,234,000, down $359,000 from the prior year because prior-year totals included significant dome-related grants; the town expended about $1.4 million of awarded grants in fiscal 2025 with the remainder to be used in fiscal 2026. School food services recorded $2,833,000 in revenue against a $3,087,000 budget (92% attainment); expenses rose by roughly $265,000 year over year, mainly for replacing three aging walk-in freezers and higher food costs. "The vast majority of that 265 increase was an expenditure for new walk in freezer refrigerators in each of the elementary schools," a finance presenter said. The committee heard that other variances included roughly $800,000 above budget in lien-sale-related fees (part of a property lien sale and collections process), about $800,000 in unrealized investment gains, and approximately $1.1 million in higher-than-expected operating transfers in, attributed by staff to an ARPA transfer made earlier in the year. Investment income outperformed expectations; Andrew, who oversees investments, explained that the town held higher-yield treasury securities that have appreciated as market rates fell, creating unrealized gains the town is holding until maturity. On internal-service funds, the town reported a stop-loss recovery of $850,000 and a fund increase of about $1.64 million, bringing reserves above the usual 8% level. Committee members asked staff to follow up on line-item presentation and on an apparent negative restricted fund-balance line on the June balance sheet; staff agreed to investigate and report back. No formal votes or ordinance actions were taken at the meeting.
